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Council discusses zoning-based short-term rental limits; nonconforming use and grandfathering raise questions
Summary
A working group proposed distinguishing hosted and unhosted short-term rentals and permitting unhosted rentals only in three coastal/mixed-use zoning districts. Councilors raised concerns about housing stock, enforcement, nonconforming-use status and whether grandfathered registrations would persist under a zoning change.
Councilors and staff presented and debated a working-group proposal to regulate short-term rentals (STRs) by separating owner‑occupied "hosted" units from "unhosted" rentals where the owner is not on-site. The proposal would allow unhosted STRs only in three districts — High Density Residential 10, Shore Commercial Watch Hill and Shore Commercial General — citing coastal and commercial character as appropriate areas.
"Anywhere where you can have a residence, hosted short term rentals would be permitted, anywhere in town," Councilor Niemeyer said when summarizing that hosted rentals remain broadly allowed while unhosted rentals would be restricted to specific zones. Councilors and members of the public voiced concerns about enforcement, the practical effect of many existing registrations, and whether those currently operating would become nonconforming uses (and therefore survive as grandfathered uses attached to the property). Solicitor Conley explained that nonconforming uses generally attach to property but cannot be expanded, and that discontinuing the use can forfeit the nonconforming status.
The council treated the session as discussion-only and asked the working group and solicitor to return with clearer maps, options for an overlay district, and legal guidance on grandfathering, registration requirements and enforcement before holding a public hearing on any ordinance changes.
